Rebounding from some operational problems during the summer, Agnico-Eagle Mines (AGE-T) has enjoyed a stronger fourth-quarter highlighted by improved earnings and growing reserves.
Fourth-quarter net earnings were US$816,000 (US1 per share) on mining revenue of US$31.6 million, up from a net loss of US$748,000 (2) on revenue of US$26.5 million in the fourth quarter of 2001.
For all of 2002, Agnico earned US$4 million (6) on revenue of US$108 million, up from a net loss of US$5.4 million (9) on US$96 million during 2001.Production during the fourth quarter amounted to 75,235 oz. gold (66,372 oz. last year), 1.1 million oz. silver (597,000 oz.), 12,080 tonnes zinc (15,257 tonnes), and 1,809 tonnes copper (642 tonnes).
For 2002, there was record gold production of 260,183 oz. (234,860 oz. in 2001 plus 3.1 million oz. silver (2.5 million), 49,059 tonnes zinc (57,329 tonnes) and 4,053 tonnes zinc (1,860 tonnes).
The total operating cost rose US$18 to US$240 per oz. gold in the fourth quarter, and shot up US$32 to US$237 per oz. gold for all of 2002.
Thanks to ongoing, aggressive drilling, the total reserves at LaRonde have risen to a record 4 million oz. gold hosted by 41.7 million tons grading 0.10 oz. gold per ton, 2.03 oz. silver per ton, 3.32% zinc and 0.37% copper (or 37.8 million tonnes grading 3.4 grams gold per tonne).
With the commissioning of LaRonde mill at 7,000 tons per day, Agnico expects to be able to produce in 2003 a record-high 375,000 oz. gold at a record-low total cash cost of US$125 per oz.
The company says its balance sheet is the strongest in its history, with nearly US$280 million in available cash resources, no gold sold forward and increasing net free cash flow.
The company is also keen to further explore its high-grade Lapa gold discovery situated just 7 miles east of LaRonde. The project is jointly held with Breakwater Resources (BWR-T).
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